By Adekoya Samson

The House of Representatives has approved a total of N21.52 billion for the Ministry of Steel Development and its agencies for the 2026 fiscal year, while declaring an emergency over the worsening condition of the Itakpe Iron Ore Mining Company and Ajaokuta Steel Company Limited.

The resolution followed a tense budget defence session where lawmakers described the state of the two facilities as urgent and unacceptable.

Chairman of the House Committee on Steel Development, Zainab Gimba, said the assets were too strategic to Nigeria’s industrial future to be allowed to deteriorate further.

“This is a national asset into which the Federal Government has invested heavily over the years. We cannot continue to watch it deteriorate,” she stated.

The N21.52bn allocation covers personnel, overhead, and capital expenditure for the ministry and its agencies:

• Ministry Headquarters – N5.4bn

• Raw Materials Research and Development Council – N2.66bn

• National Metallurgical Development Centre – N1.83bn

• Metallurgical Training Institute – N1.03bn

• National Steel Council – N8m

At the headquarters level, capital expenditure takes the largest share at 73% (about N4.1bn).

The committee also reviewed the 2025 budget performance, presented at N8.94bn. However, the Minister of Steel Development, Shuaibu Audu, disclosed that only N2.53bn (28.3%) had been released — with zero funds disbursed for capital projects.

Lawmakers warned that without capital funding, efforts to revive Ajaokuta Steel Company Limited and National Iron Ore Mining Company could collapse.

The committee raised serious concerns over illegal mining and vandalism at Itakpe, alleging that illegal miners have invaded parts of the facility in search of gold deposits.

The minister confirmed ongoing efforts to strengthen security and regulate the scrap metal sector to curb vandalism.

On the revival of Ajaokuta, Audu revealed that plans for partnership with a Russian entity signed in September 2024 had stalled due to sanctions linked to the Russia-Ukraine war.

The Federal Government is now exploring potential partnerships with Chinese investors, citing China’s global dominance in steel production.

“China, being the largest steel producer globally, has the capacity and technical depth to support the revival,” Audu said.

Nigeria currently produces between one and two million metric tonnes of steel annually, far below the estimated national demand of seven to 10 million metric tonnes — resulting in imports worth approximately $4 billion yearly.

Despite the urgency, no definitive timeline was provided for the full revival of Itakpe or Ajaokuta.

The committee insisted that future Memoranda of Understanding must be shared with the National Assembly at inception to strengthen transparency and oversight.

“These assets are too strategic to fail,” Gimba concluded.